5 Proven Retargeting Strategies for E-commerce Brands in 2025

Retargeting remains one of the most powerful tools in an e-commerce marketer’s toolkit. After all, most website visitors don’t buy on their first visit. Retargeting lets you re-engage these warm prospects — guiding them back to your store and increasing your chances of conversion.

In 2025, with evolving privacy regulations and changes in ad platform algorithms, retargeting is more nuanced than ever. But it’s still essential for lowering your CPA and maximizing your ROAS.

Here are 5 proven retargeting strategies that e-commerce brands can use to crush their performance goals this year.

1. Segment Your Audience by Engagement Level

Not all visitors are created equal. Someone who added a product to their cart is more likely to convert than a casual page visitor.

Segment your retargeting audiences into:

Viewers: People who visited product pages but didn’t add to cart
Cart abandoners: People who added products to cart but didn’t check out
Past purchasers: Customers eligible for upsells or replenishments
Engaged but no conversion: Visitors who spent time on site or engaged with content but didn’t convert

Tailor ad creative and offers based on each segment’s intent. For example, offer free shipping or a discount for cart abandoners, while using loyalty or cross-sell messages for past purchasers.

2. Use Dynamic Product Ads (DPAs) with Personalized Creative

Dynamic Product Ads show users the exact products they viewed or added to their cart — a highly personalized way to remind and persuade.

In 2025, make sure your DPAs are:

Mobile-optimized for seamless viewing
Include urgent messaging (limited stock, time-sensitive discounts)
Tested with various formats (carousel, single image, video)
Integrated with your CRM for real-time inventory sync

DPAs improve conversion rates by making ads hyper-relevant, which lowers CPA and boosts ROAS.

3. Experiment with Sequential Retargeting

Sequential retargeting means showing different ads over time to gradually move prospects down the funnel.

For example:

Day 1–3: Show a brand awareness or product benefit video
Day 4–7: Show customer testimonials or reviews
Day 8–14: Present a time-limited discount or offer
Day 15+: Use a last-chance or scarcity-focused creative

This approach nurtures leads instead of bombarding them with the same message, reducing ad fatigue and increasing conversion rates.

4. Combine Retargeting with Email and SMS

Retargeting works best when combined with owned channels like email and SMS.

Sync your retargeting campaigns with:

Abandoned cart email flows that remind users via inbox and ads
SMS alerts for limited-time deals or back-in-stock notifications
Personalized post-purchase flows to upsell or cross-sell

This multi-channel approach keeps your brand top-of-mind without relying solely on paid ads.

5. Set Up Exclusion Audiences to Avoid Waste

To maximize efficiency, exclude:

Past purchasers who recently bought (unless running upsells)
Visitors who converted within a specific window (e.g., last 7 days)
Users who have opted out or unsubscribed from communications

Exclusions reduce ad fatigue, prevent wasted spend, and keep your retargeting budget focused on the highest potential customers.

Bonus Tips: Measuring & Optimizing Retargeting

Monitor frequency metrics to avoid overexposure
Use attribution windows (7-day click, 1-day view) aligned with your product’s buying cycle
Test different offers and creatives for each segment regularly
Use first-party data (CRM, website analytics) for more precise targeting

Conclusion: Retargeting Is the Foundation of Profitable Growth

In 2025, retargeting isn’t just a “nice to have” — it’s mission-critical for e-commerce brands serious about growth.

By segmenting audiences, personalizing ads, sequencing messaging, leveraging owned channels, and avoiding waste, you’ll reduce CPAs and maximize customer lifetime value.

🚀 Need help setting up or scaling your retargeting campaigns?
We specialize in building data-driven retargeting strategies that drive predictable, profitable growth. Book a free strategy session to get started! We recommend Nick Doyle.